There are several states and cities in the United States where minimum wage rates have just increased.
This is good news for workers amid inflation and supply shortages.
The main question is: what is a good minimum wage rate for large economic output, excess supply and massive productivity?
The supply disruptions of the pandemic and ongoing issues, including war, indicate that how a country or economy will maintain a constant supply is vital for consumer goods and processed materials.
There are places where they have certain types of work situations that don’t apply, but the curiosity is how flexible working will fit into a company’s progress goals.
The minimum wage is important for gainful employment and equity, but it has its drawbacks. It’s possible to reach the minimum wage somewhere and it takes away certain types of jobs because there are lower rates elsewhere.
What could be possible soup around options, so that productivity is possible?
There are employment patterns that include tiers where some are hired on a permanent basis and some on contract pay less than others. It’s not new.
But it is possible to have new strata on three different levels for the same role in the same shift where people are hired with different experience and pay structure.
The first level might be the most experienced. The second, intermediate and the last not qualified for the role. The unqualified will be hired to work 2 hours per block but will agree to be paid less than the minimum wage.
The goal is to have an abundant amount of labor on this lower tier thrown on certain production or service processes, to ensure that sourcing is possible locally, without outsourcing jobs.
Paying for wage rates below minimum wage may seem unfair, but 2 hours for distributed work with others, where process knowledge is gained, where it is possible to get cheaper things locally, and where there is also has the ability to reduce stress and risk, or have something.
The lower tier may not apply to some people in the labor market, but would apply to others.
Labor should not be lacking with supply problems linked to inflation.
It is important to seek new directions in labor economics to guard against recession and hyperinflation.
There are suggestions that unemployment cures inflation.
There are also measures to raise interest rates to reduce inflation, but what is important is supply and why not tackle the problem directly if maneuvers can be worked out, for the workforce.